SINGAPORE (Feb 10): USP Group, the property developer, marine engine distributor and waste oil recycler, said losses for the 9M ended Dec widened to $1.24 million from $0.35 million after it reversed into a 3Q loss of $0.38 million.
The negative 3Q bottomline was due to a smaller gain on revaluation of quoted securities and absence of a $1.16 million exceptional gain on disposal of MSV which took place last year.
Consolidated revenue in 3Q grew by 15.1% to $11.0 million against the same period last year. The increase was driven by stronger performance of its marine sector which grew 22.7%. However, this was partially offset by lower revenue from its waste oil recycling sector which dropped to $0.3 million this quarter mainly due to lower CPO prices.
Other income decreased mainly due to a smaller revaluation gain on quoted securities in this quarter of $0.2 million as compared to a gain of $0.8 million a year ago.
Selling and distribution expenses increased by $0.1 million due to the increase in logistics overheads from the increase in sales activities.
General and Administrative expenses dipped by 13.8% to $3.4 million. This qas largely due to the legal suit with an associate company, MSV Systems and Services, in 3Q which was subsequently settled in November 2017.
Finance cost increase to $0.5 million from higher effective borrowing rates and borrowings.
In its outlook, USP said the marine business will continue to be its revenue driver for the year although the recycling business is expected to improve going into 4Q4 with the recovering palm oil prices. Meanwhile, its development at 71 Blandford Drive will be built as a two and a half storey semi-detached instead of the existing two storey semi-detached to increase its selling price as the residential property market is expected to remain soft.
Shares in USP last traded at 8 cents on Friday.
